Public trading strategy
Wall Street trading desks are minting cash — momentum play on JPMorgan, Goldman,
Thesis
JPMorgan, Goldman Sachs, and Citigroup all just reported record-breaking trading revenues, showing that Wall Street is thriving on market volatility. When major banks post blowout earnings, their stocks typically enjoy a momentum pop as analysts upgrade their forecasts for the coming quarters. The broader market might be jittery, but the pure profit numbers from these trading desks provide a clear, fundamental catalyst to buy the banks.
Strategy approach
Build a swing trading strategy for the financial sector. Go long JPM, GS, and C at the open of the next trading session following their earnings release. Hold for a maximum of 10 trading days. Set the profit target at a 4% gain and exit automatically if the stock drops 3% from the entry price.